Fed Takes Sweeping New Steps to Provide Up to $2.3 Trillion in Loans

The video discusses the Federal Reserve's $2.3 trillion lending facilities, including the Main Street and municipal loan facilities. The Fed plans to buy PPP loans, corporate bonds, and commercial mortgage-backed securities. The Main Street facility offers four-year loans to companies with up to 10,000 employees, while the municipal facility provides short-term notes to large states and cities. The Fed is not buying junk-traded bonds due to legal and financial constraints. These programs aim to support the economy, with potential for future expansion.

How much will the Fed lend to states and municipalities, and what is the backing amount from the treasury?

What types of securities is the Fed currently not buying, and why?